AllianceBernstein (NYSE:AB) Hits New 12-Month Low - Here's What Happened

Key Points

• AllianceBernstein shares fell to a new 52-week low of $34.80, trading 1.9% lower and below their 50-day and 200-day moving averages.
• Analysts maintain a consensus “Hold” rating with an average price target of $39.50, despite some rating changes and TD Cowen raising its target to $38.
• The company slightly missed quarterly earnings and revenue estimates, while cutting its quarterly dividend from $0.83 to $0.82 per share. The new annualized dividend yield remains high at approximately 9.4%, but the payout ratio is 97.04%.

AllianceBernstein Holding L.P. (NYSE:AB - Get Free Report) hit a new 52-week low during mid-day trading on Wednesday. The company traded as low as $34.80 and last traded at $34.8950, with a volume of 388723 shares trading hands. The stock had previously closed at $35.51.

Analyst Upgrades and Downgrades

Several research analysts have commented on AB shares. Zacks Research upgraded AllianceBernstein from a "strong sell" rating to a "hold" rating in a report on Monday, June 29th. Weiss Ratings cut AllianceBernstein from a "hold (c+)" rating to a "hold (c)" rating in a report on Monday, August 3rd. Sanford C. Bernstein reissued an "outperform" rating on shares of AllianceBernstein in a research report on Friday, July 10th. TD Cowen raised their price target on AllianceBernstein from $37.00 to $38.00 and gave the company a "hold" rating in a research note on Monday, July 20th. Finally, Evercore set a $39.00 price objective on AllianceBernstein in a report on Friday, July 10th. Two investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, AllianceBernstein has a consensus rating of "Hold" and an average price target of $39.50.

AllianceBernstein Trading Down 1.9%

The firm has a 50-day simple moving average of $36.57 and a 200-day simple moving average of $37.21. The firm has a market cap of $3.24 billion, a P/E ratio of 10.32, a PEG ratio of 1.15 and a beta of 0.79.

AllianceBernstein (NYSE:AB - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The asset manager reported $0.82 EPS for the quarter, missing the consensus estimate of $0.83 by ($0.01). AllianceBernstein had a return on equity of 25.94% and a net margin of 6.60%.The company had revenue of $887.55 million during the quarter, compared to the consensus estimate of $907.67 million. During the same period in the previous year, the firm posted $0.76 earnings per share. The company's revenue was up 7.5% on a year-over-year basis. Research analysts predict that AllianceBernstein Holding L.P. will post 3.47 earnings per share for the current fiscal year.

AllianceBernstein Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Wednesday, August 12th were given a dividend of $0.82 per share. The ex-dividend date of this dividend was Wednesday, August 12th. This is a negative change from AllianceBernstein's previous quarterly dividend of $0.83. This represents a $3.28 annualized dividend and a dividend yield of 9.4%. AllianceBernstein's payout ratio is currently 97.04%.

Insider Activity at AllianceBernstein

In other news, Director Charles Stonehill sold 5,000 shares of the firm's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $37.17, for a total value of $185,850.00. Following the sale, the director directly owned 24,573 shares in the company, valued at approximately $913,378.41. This trade represents a 16.91% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 2.70% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Axiom Investment Management LLC purchased a new stake in AllianceBernstein during the first quarter valued at approximately $28,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in shares of AllianceBernstein during the fourth quarter worth $28,000. Russell Investments Group Ltd. acquired a new position in shares of AllianceBernstein during the second quarter worth $28,000. Ascentis Independent Advisors purchased a new stake in shares of AllianceBernstein during the 1st quarter valued at $30,000. Finally, NFSG Corp lifted its holdings in shares of AllianceBernstein by 800.0% during the 1st quarter. NFSG Corp now owns 900 shares of the asset manager's stock valued at $34,000 after purchasing an additional 800 shares during the last quarter. Institutional investors own 19.25% of the company's stock.

About AllianceBernstein

AllianceBernstein Holding L.P. NYSE: AB is a global investment management company that provides investment products, research and related services to institutional investors, financial advisers, individual investors and private-wealth clients. Its offerings span equities, fixed income, multi-asset strategies, alternatives and other portfolio solutions.

The company serves clients through institutional and retail channels, including pension plans, governments, foundations, insurance companies, financial intermediaries and high-net-worth individuals.

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